Apple’s enviable cash hoard is dwindling — and that’s surprisingly good news for the stock price

Apple’s enviable cash hoard is dwindling — and that’s surprisingly good news for the stock price
·3 min read

Apple’s cash position is plunging, and that’s positive for both the business and the company’s shareholders. This theory was laid out several decades ago by Michael Jensen, an emeritus professor of business administration at Harvard Business School. In a now-famous 1986 article in the American Economic Review, Jensen argued that companies would be less efficient to the degree they hoarded cash above and beyond what was needed for current operations.